Given the urgency of global crises, interest abounds in alternative organizational forms (e.g., multistakeholder social enterprises, MSEs), promising structural solutions to engage diverse stakeholders in the creation of joint social, economic, and democratic values. Yet, studies of the who, how, and why of stakeholder engagement are predominantly rooted in for-profit contexts, assuming objective boundaries between insider/outsider stakeholders and engagement as a means to an end. The context of MSEs challenges both of these assumptions. Based on interviews with leaders of 28 (...) French MSEs, I show how the latter made sense of their expectations versus the reality of stakeholder engagement. Leader sensemaking strategies informed the enactment of (revised) stakeholder engagement strategies to maintain coherence, or address misalignment, between expectations and reality. The article contributes to the literature by challenging assumptions of stakeholder engagement in for-profit firms. It also cautions against an overreliance on designated organizational forms to enable substantive stakeholder engagement. (shrink)

In the remediation of business-related human rights abuses, meaningful stakeholder engagement which culminates in effective access to remedy begins with forms of communication that enable the voice and agency of marginalized stakeholders, and value their lived experiences. Here, we consider how the development of a _dialogical_ theorization of stakeholder engagement is aligned with the practical and ethical goals of an effective access to human rights remedy. Drawing on dialogical theory, we discern four ethical criteria —_power cognizance, polyphonic pluralism, generative agonism (...) and discursive unfinalizability_— that reveal three general approaches to stakeholder engagement —_essentially monologic, seemingly dialogic and authentically dialogic_— based on the extent to which they exhibit the criteria above. We propose and discuss an 'authentically dialogic' approach for organizations adopting morally expansive, victim-centric approaches to engagement in the design and implementation of company-led remedial mechanisms. (shrink)

The OECD Guidelines for Multinational Enterprises have become increasingly relevant in the debate on the role of business in society. This instrument for responsible business conduct (RBC) is considered to be unique due to its implementation mechanism, the National Contact Point (NCP) procedure. The NCP procedure applies a pragmatic stakeholder engagement approach to contribute to the effectiveness of the OECD Guidelines. However, little is known about the effects of the NCP procedure. To fill this gap, this study provides insights into (...) the ex‐post effects of the Dutch NCP procedure on solving non‐compliance issues, the RBC performance of MNEs, and societal impact. This study developed a framework of different layers of effects. It used this framework to gather and analyze empirical data through interviews with parties that have participated in non‐compliance procedures. The effects found are mainly related to solving issues, while the effects on RBC within MNEs and their societal impact seem limited. Based on the findings, this study concludes that the full potential of the OECD Guidelines remains unrealized in most of the investigated cases. (shrink)

To shield stakeholders from exploitation, society increasingly expects organizations to engage with stakeholders. While exploitation of stakeholders is of great concern, economic literature points to the costly nature of stakeholder engagement vis-à-vis alternative mechanisms that protect stakeholders, such as competitive markets. When the costs of stakeholder engagement outweigh the benefits, why would organizations engage with stakeholders? Through an analysis of the cooperative enterprise and a comparison with its capitalist counterpart, we theorize two additional reasons why stakeholder engagement is beneficial. First, (...) we explain how stakeholder engagement facilitates long-term organizational resilience and protection of stakeholders in times of crisis, and second, we show how engagement is a decisive ingredient in answering non-economic value requirements of stakeholders. To conclude, we contribute to the broader stakeholder engagement and cooperative literature by stressing that engagement practices, and particularly democratic governance arrangements, are subject to design principles that sometimes favor stakeholders in capitalist firms. (shrink)

This article analyses the ethics of how community engagement and dialogue as applied by a mining corporation in Chile led to erosion of the community’s psychological freedom despite being aligned with best practice. This article details how a mining company squeezed the psychological freedom of the community in order to obtain an agreement between the period of 2000 and 2016. The findings focus particularly on a 9-month period between 2015 and 2016 when the company undertook intense community engagement. The article (...) identifies six corporate action phases undertaken which curtailed the community’s psychological freedom as paying off local leaders; challenging via courts of law; co-opting community lawyers; prohibiting a key debate during dialogue; and remaining silent after failing to honour its own self-imposed rule. The findings label the company’s community engagement as contradictory; while it conducted transitional and transformational engagement in formal spaces, it also engaged in unethical strategies in the informal spaces of community engagement. The result was overall community consent and an even more fragmented community. This article finds that when it limits the psychological freedom of participants, who are already divided as a group, corporate–community engagement can be viewed as ethically problematic. Based on analysis of the literature and an empirical case analysis, this article contributes a test for assessing the ethics of CCE. (shrink)

This paper investigates necessary conditions for developing a participatory, rightsholder-driven approach to remedy for business-related human rights abuses by analyzing findings from a case study with the Fair Food Program. With the inclusion of human rights into discussions of business ethics and CSR, scholars and practitioners have made calls for participatory approaches to remedy to address cases of human rights abuses. However, a gap remains in our understanding of how to operationalize participatory approaches in a manner that empowers rightsholders, particularly (...) within contexts of severe power imbalances. The paper puts forth a rightsholder-driven theoretical framework for remedy, grounded on critical dialogic accountability principles and integrated with empirical analysis from the Fair Food Program case study. This framework defines remedy as a system comprising reinforcing aspects rather than standalone mechanisms. The critical dialogic accounting and accountability framework provides a theoretical framing of engagement that enables the inclusion of multiple, divergent voices and aims toward meaningful engagement with marginalized groups. The analysis of findings from the case study identifies enforcement and education as necessary conditions for effective and empowering rightsholder-driven approaches to remedy. The paper deconstructs these conditions to develop an understanding of the program’s unique approach to enforcement and education. The paper concludes by discussing the implications of rightsholder-driven remedy for Business and Human Rights and business accountability. (shrink)